MLS & Wholesaling
Investor · Hampton Roads, VA · Member since 2023 · 32 posts · 9 votes
MLS & Wholesaling
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Real Estate Broker · Reno, NV · Member since 2023 · 267 posts · 297 votes
3yQuote from @Allan Smith:
Only new investors think that a deal can be found on the MLS that nobody else saw. It is a nationwide listing service, if it's a good deal somebody would have bought it. I have seen dozens of MLS deals blast out on the wholesalers list, and every time they are way overpriced and don't sell. The wholesaler just didn't know.
Going to disagree with your assessment. Some of the best deals we have done for clients were on MLS. They were such great deals we had to identify them within an hour, and get an offer within a few hours. Over the years we have seen fantastic deals sitting in plain sight.
Why people can’t always see them is they don’t have an agent watching for deals every day (so they miss them) and/or are lacking the analysis portion that makes a meh property on MLS a great investment that nobody else can see or understand.
30 Replies
- 3yMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Rickina Velte:
Everything I read and hear says you can't wholesale from the MLS...and I'm wondering why that is? If I find a potential property that is priced below market value, am I not able to put it under a contract because I can't show proof of funds? Or I'm not pre approved with a traditional lender?
Is that reason why working from the MLS is not recommended?
I'm wondering if I order a title search and home inspection, put the property under contract would that make the property more appealing to a cash buyer at that point if everything checks out? And if so could I assign that contract then?Thank you as always!
The MLS is a highly efficient market.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Investor · Hampton Roads, VA · Member since 2023 · 32 posts · 9 votes3y
Quote from @Marc Rice:
Quote from @Rickina Velte:
Everything I read and hear says you can't wholesale from the MLS...and I'm wondering why that is? If I find a potential property that is priced below market value, am I not able to put it under a contract because I can't show proof of funds? Or I'm not pre approved with a traditional lender?
Is that reason why working from the MLS is not recommended?
I'm wondering if I order a title search and home inspection, put the property under contract would that make the property more appealing to a cash buyer at that point if everything checks out? And if so could I assign that contract then?Thank you as always!
The MLS is a highly efficient market.
I've definitely heard a varied set of responses, Thank you for chiming in!
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes3y
Quote from @Trevor Richardson:
Quote from @Allan Smith:
Only new investors think that a deal can be found on the MLS that nobody else saw. It is a nationwide listing service, if it's a good deal somebody would have bought it. I have seen dozens of MLS deals blast out on the wholesalers list, and every time they are way overpriced and don't sell. The wholesaler just didn't know.
Going to disagree with your assessment. Some of the best deals we have done for clients were on MLS. They were such great deals we had to identify them within an hour, and get an offer within a few hours. Over the years we have seen fantastic deals sitting in plain sight.
Why people can’t always see them is they don’t have an agent watching for deals every day (so they miss them) and/or are lacking the analysis portion that makes a meh property on MLS a great investment that nobody else can see or understand.And I will disagree with your assessment, but I will do so not to be combative, but to help you and others willing to see it from an other perspective.
No one said or claimed it can't be done. You simply proved it can be done. And of course, it can.
But if you want to pull out the card of "I have done it so...", then you have to be able to admit, so can I right? I can also throw out the card, HUNDREDS OF THOUSANDS try this every day and they fail. And if you insinuate that hundreds of thousands of people are either blind or incompetent for not "seeing deals in plain sight on the MLS", obviously, that is not the case. So there is that point.
Now, the reason why the other guy said what he said.. is because he is factually correct. Really! Allow me to explain why:
Why the would you go to the MLS? Seriously think about this. Why would you go out of your way to make it harder for yourself?
On the MLS you are not only competing with other investors, but now you are also going to compete with millions of other traditional buyers. If you think about it.. there is absolutely no possible argument anyone can bring why it is "better" or why you should go on the MLS.
And before anyone answers, I suggest before anyone responds, find data to back up the following argument. Just find all the people that try looking on MLS for deals, and then bring all the people that RELIABKY find good deals on the MLS.. NO ONE can argue with me that the odds aren't against you.
Again, we are not discussing if it is possible or not. We all know it is possible... but if you bring mere opinion to a data fight you lost before you even got here!
No.
The OP asked the question "WHY can't you wholesale on the MLS?".. the answer is you can... but is it wise to do so?
No! Data says your chances of success are slim.
So if there is a river of starving giant man-eating crocodiles in front of you, and the chances of survival swimming in that river are 1%, will you jump in?
No right? Data says it is a bad move.
And this is why SO many wholesalers keep on failing.
DMM, cold calling, and driving for dollars, all have horrible success rates, but everyone thinks that somehow they are the exception to the rule, and they do it anyways and then complain about why it is so hard to succeed. It is retarded, simply retarded.
Congrats you got amazing deals on the MLS, great (I mean it, you have a talent), however, that is not a justification to convince newbies to go do it just because you did it (a several times).
Be careful with the advice you give. Are you blowing your own horn or are you legitimately trying to help others? Be honest and ask yourself that question. Now can you seriously tell me that you think by telling her or inspiring her to go the MLS route that there is a good chance she will be successful?
No right?
So by anyone telling her this, you are honestly not helping her, right?
It is not about being right. It is about truly being a mentor and guiding people with advice that will give people the highest probability to be successful.
Lastly, on a more personal note...
Doing these shenanigans is why there CONSTANTLY are regulations against wholesaling. I will people would stop making it worse for everyone. Agents have it hard enough.
There is a place for agents and there is a place for wholesalers.
Wholesaling is a legitimate value to homeowners who for some reason or another other can't or don't want to list with an agent. That is OUR domain,
But when someone wants market value for their house, that is an Agent's domain. They pay a lot for their license, for their exams, tests, etc.
WTH. Everyone stay in your lane and we all will prosper!
Rant over. But all sides... good points.
- 3yMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Rickina Velte:
Everything I read and hear says you can't wholesale from the MLS...and I'm wondering why that is? If I find a potential property that is priced below market value, am I not able to put it under a contract because I can't show proof of funds? Or I'm not pre approved with a traditional lender?
Is that reason why working from the MLS is not recommended?
I'm wondering if I order a title search and home inspection, put the property under contract would that make the property more appealing to a cash buyer at that point if everything checks out? And if so could I assign that contract then?Thank you as always!
It's best to find off market deals to wholesale, not MLS deals.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - 3yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesThe key to successfully negotiating a deal well below “market” price is CREDIBILITY
Quote from @Rickina Velte:
Everything I read and hear says you can't wholesale from the MLS...and I'm wondering why that is? If I find a potential property that is priced below market value, am I not able to put it under a contract because I can't show proof of funds? Or I'm not pre approved with a traditional lender?
Is that reason why working from the MLS is not recommended?
I'm wondering if I order a title search and home inspection, put the property under contract would that make the property more appealing to a cash buyer at that point if everything checks out? And if so could I assign that contract then?Thank you as always!
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